CURRENT UPDATE: FIFTEENTH FINANCE COMMISSION

NK SINGH APPOINTED 15^TH  FINANCE COMMISSION CHAIRMAN

The Government of India, with the approval President of India, has constituted Fifteenth Finance Commission in pursuance of clause (1) of article 280 of the Constitution, read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 w.e.f. 27th November, 2017. The Commission will make recommendations for the five years commencing on April 1, 2020. 

This Commission will be headed by Shri. N.K.Singh, former Member of Parliament and former Secretary to the Government of India. Shri Shaktikanta Das, former Secretary to the Government of India and Dr. Anoop Singh, Adjunct Professor, Georgetown University shall be the members of the Commission.  Dr. Ashok Lahiri, Chairman (Non-executive, part time), Bandhan Bank and Dr. Ramesh Chand, Member, NITI Aayog shall be the Part time members of the Commission. Shri Arvind Mehta shall be the Secretary to the Commission.  

 The Terms of Reference of the Commission has been issued vide notification Number S.O.3755(E). dated 27th November, 2017.

The panel will review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the states. As per Article 280 of the Constitution, the commission is required to make recommendations on the distribution of the net proceeds of taxes between the Centre and the states. Soon after the appointment, Singh, a former bureaucrat, told reporters that the commission will examine implications of GST in terms of finances of both the Centre and states "because this is about the fiscal issue of the general government".

The commission also suggests the principles which should govern the grants-in-aid of the revenues of the states out of the Consolidated Fund of India. As per the terms of reference (ToR), the panel will also look into "the impact of the GST, including payment of compensation for possible loss of revenues for 5 years, and abolition of a number of cesses, earmarking thereof for compensation and other structural reforms programme, on the finances of the Centre and states", said the notification.

Further, the commission will examine progress made in promoting ease of doing business by effecting related policy and regulatory changes and promoting labour intensive growth. The commission will use the population data of 2011 while making its recommendations. The 14th Finance Commission, headed by Y V Reddy, was set up on January 2, 2013. Its recommendations cover the period from April 1, 2015 to March 31, 2020.

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